The pound is taking advantage of the US dollar’s weakness and seems to succeed in its second move above 1.40. What’s next?
Here is their view, courtesy of eFXnews:
BTMU Research discusses GBP/USD outlook and notes that the pound’s upward momentum received more attention after cable broke back above the 1.4000-level.
“Recent price action supports our outlook for a stronger pound in the year ahead. The pound has been the best performing currency since the summer of last year driven by the BoE’s decision to begin raising rates gradually and favourable Brexit developments which have reduced the risk of a more disorderly “No Deal†Brexit outcome…
A smoother Brexit outcome is a key assumption behind our outlook for a stronger pound in 2018,†BTMU argues.
BTMU sees GBP/USD on a gradual upward path towards 1.47 by year-end.
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